“Made in the USA” is a nebulous term and sometimes misleading.
This week at the Supplier Showcase at the SHOT Show, the term is generally used in a connotation that most customers understand: a product made in the U.S. with U.S.-sourced materials.
However, technically, "made in the USA" can be used for products made in the U.S. with materials sourced overseas.
If a product is made in the U.S. and sources materials from a country, we have a trade agreement with, the product is still made in the U.S. and has a designation of TAA Compliant.
Many government agencies will accept TAA Compliant products, but the Defense Department is an exception.
In 2014, the Department of Defense issued the Berry Amendment as part of the DoD Appropriations Act.
The Berry Amendment requires that any funding appropriated or otherwise made available to the Department of Defense (DoD) may not be used to procure any of the following items, either as end products or components, unless the items have been grown, reprocessed, reused, or produced in the United States.
The items are primarily used for textiles and apparel (e.g., wool, cotton, synthetic fabric, canvas, silk, natural fibers, and different yarns).
As with any government regulation, exceptions exist but are limited; if a material or product is no longer made in the U.S., it is the major exception.
A Berry Amendment product does not necessarily mean it is better than a non-Berry Compliant product. Still, it will likely cost 10% to 50% more, but in some cases, the Berry Compliant product is better. With the potential for tariffs, Berry Compliant products may find some new buyers outside of the U.S. government.
Many at the Supplier Showcase this week are unsure how the tariffs affect sales. If the costs of non-Berry Compliant products increase, will Berry Compliant products see a resurgence?
For those we talked to at the Showcase, which had just over 600 exhibitors, business was just OK last year, but many have renewed hope that the new Trump Administration will make a difference and increase business.
But even with the potential of increasing business, the tariff issue lingers.
Some, who mainly sell Berry Compliant products, see the tariffs as a potential boost to their business.
In some cases, some manufacturers have developed Berry Compliant products to complement their line of non-Berry Compliant products this year.
The next step is to wait and see if tariffs affect these individual suppliers and, if so, who will cover the additional costs.
If the costs are passed on to the manufacturer, Berry Compliant products may be given a second look, even if they are more expensive because from a marketing perspective, a Berry-compliant product made in the USA has a positive connotation.
And, if the product is of better quality, it may be money well spent by both the manufacture and the ultimate end-user.
– Alex Miceli
